About the House: Varied standards for different lenders

The biggest banks that helped cause the financial meltdown make record profits and CEOs get huge bonuses; regular folks have a hard time getting reduced interest.

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Sturgis Journal - Sturgis, MI

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Posted May. 9, 2014 at 12:00 PM

Posted May. 9, 2014 at 12:00 PM

Sen. Elisabeth Warren, from Massachusetts — Massachehewits — out East someplace — is working to even the odds for normal people to find better banking. Like the deals the big banks get.

Just think what it would do for the housing market if student loans — and by extension, first-time homebuyers — were charged the same low rate big banks pay for their loans, instead of the typical 8 to 12 percent. Bankers use low interest money to invest, making a fortune; recent grads can’t afford a new car or house.

This is all according to various online, television, and radio sources and should not be considered anything I dug up on my own. It may inaccurate. However, it does bring to mind a couple of things about our government and our housing.

The biggest banks that helped cause the financial meltdown make record profits and CEOs get huge bonuses; regular folks have a hard time getting reduced interest because the meltdown created new, often arduous regulations with which homebuyers must comply.

Plus, if you get a federally backed mortgage, there are even more requirements. Exact requirements depend on which agency has oversight over backing your particular loan. Each agency has different stipulations.

Some agencies are concerned with peeling paint, broken glass and roof conditions, reasonable concerns that pertain to maintenance and longevity. Another agency will have altogether different paperwork and might look at the R-value of insulation and whether the plumbing system has leaks. Again, reasonable conditions.

I have to wonder why each agency has different standards. Seems to me that it would be a better use to have one agency in charge of it and combine it all under one roof. Oops, silly boy! Where did that notion come from?

What does this rant have to do with anything? Well, I guess it shows that when you get things figured out, the rules change.

Yes, it does make buying a home more difficult at times, but it also points out that home-buying is not a solo sport. It’s a team event. Line up your team with care and you’ll have a better time of it About the House.

Rob Kinsey has been a licensed builder for 30 years and is a home inspector with nearly 20 years of experience.